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Reports of Cases in the High Court of Chancery of Maryland 1846-1854
Volume 200, Volume 1, Page 478   View pdf image (33K)
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478 HIGH COURT OF CHANCERY.

with a heavy loss, from which probably they may not be pro-
tected, even if their present application is successful.

The authorities show very clearly, that a mortgagee, having
given notice to the tenants holding the mortgaged premises
under leases granted by the mortgagor, either before or after the
date of the mortgage, is entitled to receive from the tenants the
rents, in arrear at the time of the notice, as well as those which
accrue afterwards. Moss vs. Gallimore and another, 1 Douglas,
278; Pope vs. Biggs, 17 Eng. C. L. Rep., 368; 1 Powell on
Mortgages, 175, 176, 177.

In this case, the requisite notice appears to have been given
on the 23d of February last, from which period it is presumed
no payments have been made to the mortgagors; and as from
that period the tenant could not be compelled to pay the mort-
gagors, it would seem to follow, that if the rents cannot be col-
lected under the authority of this court, and applied to the ex-
tinguishment of the mortgage debt, they cannot be collected at
all.

The objection taken by Mrs. Abbott to the application of the
petitioners is, that by the terms of the decree, the petitioners are
entitled to ask for nothing more than a sale of the principal
mortgaged estate; and that this court has no authority or juris-
diction, by order on said petition, to direct said rents or ar-
rears, or any part thereof, to be collected and paid over to said
petitioners. But cases are not unfrequent in this court, in
which trustees, acting under the authority of decrees similar in
their terms to the present, have been permitted, when sales of
the property could not be readily or advantageously made, to
rent it, and account for the rents to the parties entitled to the
proceeds of the sales; and no reason suggests itself why the
court may not give the like authority to collect and account for
rents due, when the sales are effected. And as in this case it
is apparent that the money raised by the sales is quite inade-
quate to pay the mortgage debt, the propriety of applying the
rent to that object is most obvious.

The court will, therefore, give the trustee power to collect
the interest and rents due upon the mortgaged property, and



 
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Reports of Cases in the High Court of Chancery of Maryland 1846-1854
Volume 200, Volume 1, Page 478   View pdf image (33K)
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